Economic Survey Predicts GDP Growth Rate of 6.3-6.8%
New Delhi: Union Finance Minister Nirmala Sitharaman presented the Economic Survey for the financial year 2024-25 in Parliament on Friday. The survey projects India’s GDP growth rate for the upcoming financial year 2025-26 to be between 6.3% and 6.8%. Meanwhile, the country’s economic growth rate for the current fiscal year 2024-25 is estimated to be at a four-year low of 6.4%. Sitharaman is set to present the Union Budget for 2025-26 on Saturday.
Following the President’s address, the Finance Minister tabled the Economic Survey in both Houses of Parliament—Lok Sabha and Rajya Sabha. The Economic Survey assesses the performance of the economy during the current fiscal year 2024-25 and highlights key challenges facing the country. It serves as an annual document presented before the Union Budget to review the economic situation and outline reforms and development strategies.
The survey emphasizes the need for structural reforms and regulatory measures at the grassroots level. It notes that geopolitical tensions, conflicts, and global trade policy risks pose significant challenges to the world economy. According to the Economic Survey, retail inflation, which was 5.4% during the financial year 2024, has declined to 4.9% between April and December.
Besides providing an outlook for the next fiscal year 2025-26, the Economic Survey outlines the growth trajectory of various sectors within the economy. It is prepared by the Economic Division of the Department of Economic Affairs under the supervision of the Chief Economic Adviser. The first Economic Survey was presented in 1950-51 as part of the budget documents. In the 1960s, it was separated from the Union Budget and has since been presented in Parliament a day before the budget announcement.
Notably, according to the National Statistical Office (NSO), India’s GDP is projected to grow at 6.4% in the current fiscal year 2024-25 due to weak manufacturing and investment. This marks a four-year low and falls short of the 6.5-7% growth rate projected in last year’s Economic Survey and the Reserve Bank of India’s (RBI) estimate of 6.6%.